Question

7. Ms. Simms made deposits of $540 at the end of every three months into a savings

account. For the first five years interest was 5% compounded quarterly. Since then the rate

of interest has been 5.5% compounded quarterly. How much is the account balance after

13 years? (​

Answer 1

Answer:

she deposited $540 every quarter.

so for first 5 years ( 20 quarters) she's having-

567

595.35

625

656.40

689

723.65

759

796.95

836.80

878.60

922.53

968.65

1017.08

1067.90

1121

1177

1235.85

1297.60

1362.45

1430.60

- shes having approximately $1,430.60 at the end of first 5 years.

now 8 more years ( 24 quarters; per quarter CI of 5.5%) she'll have -

1509.28

159.29

1679.86

1772.26

1869.73

1972.56

2081

2195.45

2316.20

2442.59

2577.99

2719.78

2860.36

3017.67

3183.65

3358.75

3543.48

3738.37

so she has $3,738.37 at the end of 13 years.